Question

Write Short Notes on Qualities of good money.

Answer 1

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. The quality of a good money is that it is accepted by all the civilians of that country.

The good also includes all the functions of the money like common medium of exchange, measure of value, store of value and standard of deferred payment. Any money which does not possess even one of these functions of money is not considered as good money.